Accounting
Accounting
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Use the percentage method to compute the federal income taxes to withhold from the wages or salaries of each employee.
4–2A.
Employee No. |
Employee Name |
Marital Status |
No. of Withholding Allowances |
Gross Wage or Salary |
Amount to Be Withheld |
|
| 1 | Amoroso, A. | M | 4 | $1,610 | weekly | |
| 2 | Finley, R. | S | 0 | 825 | biweekly | |
| 3 | Gluck, E. | S | 5 | 9,630 | quarterly | |
| 4 | Quinn, S. | M | 8 | 925 | semimonthly | |
| 5 | Treave, Y. | M | 3 | 2,875 | monthly | |
Eaton Enterprises uses the wage-bracket method to determine federal income tax withholding on its employees. Find the amount to withhold from the wages paid each employee.
4–4A.
|
Employee |
Marital |
No. of |
Payroll Period W = Weekly S = Semimonthly M = Monthly D = Daily |
Wage |
Amount to |
| Hal Bower | M | 1 | W | $1,350 | |
| Ruth Cramden | S | 1 | W | 590 | |
| Gil Jones | S | 3 | W | 675 | |
| Teresa Kern | M | 6 | M | 4,090 | |
| Ruby Long | M | 2 | M | 2,730 | |
| Katie Luis | M | 8 | S | 955 | |
| Susan Martin | S | 1 | D | 96 | |
| *Jim Singer | S | 4 | S | 2,610 | |
| Martin Torres | M | 4 | M | 3,215 |
*Must use percentage method (Jim Singer ONLY)
Damerly Company wants to give a holiday bonus check of $250 to each employee. Since it wants the check amount to be $250, it will need to gross up the amount of the bonus. Calculate the withholding taxes and gross amount of the bonus to be made to John Rolen if his cumulative earnings for the year are $46,910. Besides, being subject to social security taxes and federal income tax (supplemental rate), a 7% California income tax must be withheld on supplemental payments.
4–6A.
(a) $250
1 – 0.25 (supplemental federal rate) – 0.062 (OASDI) – 0.0145 (HI) – 0.07 (California tax) = ___________
(b) $250/(1 – 0.3965) = __________
(c) Gross bonus amount __________
Federal income tax withheld __________
OASDI tax withheld ____________
HI tax withheld ____________
California income tax withheld ___________
Take-home bonus check __________
George Clausen (age 48) is employed by Kline Company and is paid a salary of $42,640. He has just decided to join the company’s Simple Retirement Account (IRA form) and has a few questions. Answer the following:
4–11A.
(a) Clausen’s maximum contribution _____________
(b) Kline Company’s contribution (3%) _____________
(c) Clausen’s take-home pay with the
retirement contribution deducted:
Weekly pay……………………………………………………. $ 820.00
FICA—OASDI…………………………………………………….. ______
FICA—HI…………………………………………………………… ______
FIT ($820.00 – $230.77 = $589.23 taxable)…………… _________*
State income tax ($820.00 × 0.023)……………………… ______
Retirement contribution ($12,000 ÷ 52)………… …. _______
Take-home pay………………………………………………. _______
*Married, 2 allowances.
(d) Clausen’s take-home pay without the
retirement contribution deducted:
Weekly pay………………………………………………….. $820.00
FICA—OASDI…………………………………………………. ______
FICA—HI……………………………………………………….. ______
FIT (on $820.00)……………………………………………… ______
State income tax ($820.00 × 0.023)…………………… ______
Take-home pay………………………………………………. ______
